In the 2026-27 Budget (announced 12 May 2026), the Government committed to permanently set the instant asset write-off at $20,000 for small businesses with aggregated turnover under $10 million, effective 1 July 2026. Eligible businesses can immediately deduct the full cost of depreciating assets costing less than $20,000 rather than depreciating them over years. The ATO notes the permanent measure is not yet law, though the $20,000 threshold for 2025-26 is already legislated.
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$20k instant asset write-off made permanent for small business from 1 July 2026
Why this matters for founders
Founders running a small business under $10M turnover can time equipment, tooling, and gear purchases (laptops, cameras, workshop kit) under $20,000 to claim an immediate full deduction each year, improving cashflow. Confirm assets are installed and ready for use within the income year before claiming.
Source: Australian Taxation Office
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